Here’s five focus areas of HKMA’s Fintech 2025 strategy
The HKMA eyes fully digital banks, next-generation data infrastructure and more.
The Hong Kong Monetary Authority (HKMA) has unveiled its new “Fintech 2025” strategy, outlining its plans to accelerate fintech development in Hong Kong.
“Fintech is, without doubt, a key growth engine for the financial industry in the post-pandemic era, and now is the right time to double down on our efforts to grasp the opportunities,” HKMA Chief Executive Eddie Yue said.
“’Fintech 2025’ sets out our vision in this regard. I urge all stakeholders to join forces with the HKMA. Together, we can take our city’s fintech ecosystem to new heights.”
Yue also outlined the five focus areas of the Fintech 2025:
- Digitalising banks
The HKMA will continue to promote the adoption of fintech by Hong Kong banks in its bid to encourage all bank operations to go digital. It will be launching a Tech Baseline Assessment to review how banks are adopting fintech, including their plans in the next years. It will also issue supervisory guidance to facilitate fintech adoption.
- “Future-proofing” Hong Kong for digital currencies
The HKMA will continue its collaboration with the People’s Bank of China in the technical testing of e-CNY in Hong Kong. This is intended to provide a convenient means of cross-boundary payments.
The HKMA, with the Bank for International Settlements Innovation Hub Hong Kong Centre, has been conducting research on retail Central Bank Digital Currencies. It is set to begin study on e-HKD to look into its benefits and risks.
- Next-generation data infrastructure
The HKMA will lead efforts to enhance data infrastructure, including commercial data interchange, digital corporate identity and Distributed Ledger Technology (DLT)-based credit data sharing platform.
- More Fintech-savvy workforce
The HKMA will be working with strategic partners to increase supply of fintech talents. Amongst its initiatives include the Industry Project Masters Network (IPMN) scheme, which will provide internship opportunities in banks’ fintech projects to postgraduate students. It will begin in September.
- Fintech funding and policies
The HKMA, along with key industry players, will establish the Fintech Cross-Agency Coordination Group to create the Hong Kong fintech ecosystem. The HKMA will also be involved in the Hong Kong Growth Portfolio which reinforces Hong Kong’s standing as a financial, commercial and innovation center.